Which of the Following Is Not an Advantage of the Accounting

question 56

Multiple Choice

Which of the following is not an advantage of the accounting rate of return method?

• A) It is easy to understand.
• B) It includes the time value of money.
• C) It is simple to calculate.
• D) The profit ratio is familiar to managers.

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Definitions:

Collective Agreement

An agreement in writing, made between an employer and a union certified or recognized as the bargaining unit of the employees. It contains the terms and conditions under which work is to be performed and sets out the rights and duties of the employer, the employees, and the union.

Closed-Shop Clause

A provision in a labor agreement requiring all employees to be members of a union as a condition of employment.

Trade Union

An organization formed by workers in a particular trade, industry, or company to protect their rights and interests.

Lawful Strike

A work stoppage initiated by employees that is legal under labor law and typically occurs after failed negotiations.